McClelland v. Snouffer

194 Iowa 1387
CourtSupreme Court of Iowa
DecidedSeptember 26, 1922
StatusPublished
Cited by6 cases

This text of 194 Iowa 1387 (McClelland v. Snouffer) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McClelland v. Snouffer, 194 Iowa 1387 (iowa 1922).

Opinion

Weaver, J.

Tbis litigation bas its origin in conflicting claims affecting tbe title to about 30 acres of land (spoken of in tbe record as tbe quarry property) in or near tbe city of Cedar Rapids. Any attempt to trace in detail tbe bistory of the title to tbe several smaller tracts comprised in tbis area would entail much labor, and, in our judgment, is not essential to a proper disposition_of this. appeal. It is enough, for present purposes, to say that plaintiff founds her claim of title upon a quitclaim deed of tbe property, made and delivered to her by Lewis Heins, who acquired bis title by conveyance from one Beatty, who held it in trust to secure payment of a debt owed by J. J. Snouffer, Junior, to tbe Farmers & Merchants Bank of Cascade. Though the record is more or less confused and uncertain as to tbe manner of tbe acquirement of tbe property, it is reasonably clear that, for twénty years or more prior to these conveyances, said Snouffer was tbe beneficial owner of tbe property; but at no time does be appear to have held tbe record or legal title. During all tbis period, be enjoyed tbe possession and use of tbe.property, except when such enjoyment and use were interrupted by officers and trustees, seeking to enforce [1389]*1389claims of creditors. His tenure was at times the subject of litigation, in which other members of the Snouffer family attempted to contest his rights therein; but he seems to have prevailed, and as between the parties to such controversy, he obtained a decree affirming his ownership. He was a chronic borrower and chronic litigant, and the record is confused by mechanics’ liens, sheriff’s sales, judgments confessed and judgments recovered, trust deeds, divorce proceedings, and other complications. Struggling against his sea of troubles, he employed the aid of Lewis Heins, a practicing lawyer and experienced business man. Heins assisted his client, both professionally and financially, advancing him various sums of money, and obtaining new loans to care for debts owed to creditors who refused to carry him longer. Among other expedients adopted to stave off the evil day of financial collapse, a loan was obtained from the Cascade Bank, payment of which was secured by trust deed to one Beatty, as trustee. At this time, the apparent legal title was in Snouffer’s mother, and she united with him in obtaining the loan. The money thus obtained was used in paying off debts secured by prior trust deeds and other claims. This transaction was had in July, 1907. Default being made in payment to the Cascade Bank, Beatty, the trustee, brought suit to enforce the security, and obtained decree therefor on August 7, 1909, for $7,220.92, with provision in the decree for its payment on or before August 11, 1909, and that, upon the making of such payment, the bank (or its trustee) should make and deliver a quitclaim deed to Snouffer, “or to whomsoever Snouffer shall direct.” On August 10, 1909, Heins paid the bank, or its trustee, the amount of its claim, and received the deed to himself, as grantee. About the same time, Heins obtained assignments to himself of several judgments which had been rendered against Snouffer. From that time down to the making of the deed under which plaintiff claims, Snouffer continued in the possession and use of the property, making, in the meantime, various payments to Heins upon his indebtedness. In July, 1917, Heins became seriously ill, and died on the 21st of that month. When it became apparent that the illness was liable to prove fatal, Snouffer, being alarmed at the complications liable to arise, should Heins die holding the title conveyed to [1390]*1390him by tbe Cascade Bank, appealed to bis sister, tbe plaintiff herein, and to another sister, Mrs. Benjamin, for assistance. Plaintiff and Snouffer together visited Mr. Hann, an attorney at law, and sought his advice and help. They informed Mr. Hann, in substance, that Heins was holding the title' to the property under an agreement or trust by which said property should be conveyed to him (Snouffer), whenever Heins received payment of the indebtedness due him from Snouffer for advancements, including also certain judgments of which he had taken assignment. This agreement not being in writing, it was highly important to obtain a conveyance from Heins without delay. Snouffer desired plaintiff to buy the quarry, and take a deed from Heins, as the only means by which the property would be saved; and he proposed that, if she would do so, he would shortly pay every cent he was then owing her and Mrs. Benjamin. To obtain a deed from Heins, it was necessary to pay him off, and this amount Snouffer estimated to be from $10,000 to $12,000. His proposition, according to plaintiff and Mr. Hann, was that plaintiff take the title from Hems, pay Heins’s claim and give him (Snouffer) the right or option to take deed from her, upon repayment to her within 30 days of the purchase price to Heins, together with all of his accrued indebtedness to plaintiff and Mrs. Benjamin, which was estimated at about $8,000. He also, according to their version of the understanding, undertook to obtain for them an assignment from Heins of the judgments which the latter had acquired by purchase. The sum of all the claims of indebtedness owed by Snouffer to his two sisters, after adding thereto the amount of the several judgments referred to, as stated by plaintiff and Hann, aggregated $23,874.72. To this was to be added the sum necessary to satisfy Heins’s claim, which proved to be much less than they had anticipated. Heins having consented to accept a consideration of $5,000 in full satisfaction, this sum, added to the $23,874.72, made the total nominal consideration of $28,-874.72 for plaintiff’s alleged purchase of the property. In closing the transaction, and as an apparent part thereof, Snouffer made and' delivered to plaintiff his promissory note for $28,-874.72, due one day after date. 'It is the contention of the [1391]*1391plaintiff that this note was not made or received as an evidence of debt, but was, rather, a memorandum or evidence of the agreed amount which Snouffer should pay, in the event of his exercising’ the option given him to purchase the property. Snouffer did not exercise his option, if any he had, nor did he pay any part of his debt to his sisters. In October of the same year, plaintiff .began this action, asking to recover the amount of the note, together with other moneys alleged to have been advanced to Snouffer, and prayed a lien for the amount of such recovery, upon the quarry property. This petition has beer-several times amended, varying somewhat in its allegations, and expanding its prayer for other and general relief. Shortly after this action was begun, but after due service of the original notice upon him, J. J. Snouffer died, and his administratrix, Mary C. Snouffer, has been duly substituted defendant in his stead. Later, Joseph Melsha and E. M. Kirkland, being judgment creditors of Snouffer’s, intervened severally, asking the establishment of their judgment liens upon the property. The administratrix of Snouffer’s estate also, by cross-petition, alleges that the property was and is a part of the estate of which Snouffer died seized, and that it constitutes the only asset available for payment of the claims of the creditors of the deceased and expenses of administration; and she asks that said property be adjudged and held to be subject to sale, to enable her to administer and discharge her said trust.

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Bluebook (online)
194 Iowa 1387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclelland-v-snouffer-iowa-1922.